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Player Avatar Diligent (43.86) Submitted: 4/20/2007 11:05:29 AM : Underperform Start Price: $30.34 LLTC Score: -7.07

Hummm...no real sales growth. High Price to Sales ratio. Even with the nice ROE the stock appears over valued. The high margin accounts for the large earnings, but can they actually grow these earnings or just keep them around 30 cents a quarter.

If we use the ROE of 20 as a surragate for growth or PE, then we value it at 20*1.20=$24 per share.

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